St. Louis' Top 150 Privately Held Companies: 25-50

Roughly one-fourth of the executives we interviewed at St. Louis’ largest private companies used that phrase — cautiously optimistic — to describe the outlook for 2009. I bet the other three-fourths were thinking it, if they’re optimistic at all.

It’s the reality of today’s business landscape, not just in St. Louis, but around the globe. No matter the industry, every company is feeling the effects of this recession. And although business leaders are hopeful that we’re near the bottom and that a recovery will begin at some point this year, they’re not being Pollyannas about it.

I don’t need to point out all the troubling stats and signs that lead to caution. Instead, I’ll mention a potential bright spot for those seeking a reason for optimism.

The housing industry is often viewed as a leading indicator for where the economy is heading. It’s one of the first sectors to slump, and one of the leaders of the rebound. If that’s the case this time, we can be encouraged that the Commerce Department reported a 22.2 percent jump in housing starts in February. Meanwhile, St. Louis’ largest homebuilder, McBride & Son Homes, said it sold 300 homes in the first two months of the year, compared to 1,400 homes total in 2008.

I’d like to thank Business Journal researchers Evan Binns and Lucie Wolken, who did a commendable job putting together this year’s list of the top 150 privately held companies. As our researchers quickly found, it’s much easier to get revenue information from private companies when business is going well rather than when the economy is slumping. Evan, in particular, spent countless hours seeking the most accurate and up-to-date revenue and employee figures, and then double- and triple-checked it all. This year’s list includes nine newcomers and fewer pure estimates, a testament to the researchers’ hard work.

Rob Hurtt, Section editor

26. TricorBraun

2008 revenue: $744.9 million +0.7%

Although revenue increased less than 1 percent last year, TricorBraun continued to grow through acquisitions when it bought Columbia Packaging, a Canadian company. TricorBraun has developed and designed containers for major corporations, including Williams-Sonoma.

TricorBraun has sources for containers around the world, and when it cannot find the right match for a customer, it makes the design itself at one of three U.S. design centers. “We design what can be made; other manufacturers design what they can make,” said Chairman Ken Kranzberg. The business also supplies sprayers, boxes, corks, tanks and drums, and linerboard from 30 offices and 25 distribution centers across the country. Private equity firm Code Hennessy & Simmons of Chicago is the company’s majority owner. Kranzberg and other management retain minority stakes.

Leadership: Chairman Ken Kranzberg, President and CEO Keith Strope

2007 revenue: $740 million (rank 24)

Employees: 69 local, 422 total

27. Bommarito Automotive Group

2008 revenue: $731.1 million + 20.5%

A bright spot in a largely somber industry, Bommarito Automotive Group saw its revenue rise 20.5 percent in 2008 to $731.1 million with the addition of three new St. Louis area facilities — an Audi dealership in West County and two Volkswagen facilities, one in St. Peters and another in Hazelwood. The business, owned by the Bommarito family, sold 20,846 cars in Missouri at its 15 local franchises, representing about a 15 percent increase over 2007. President John Bommarito attributes the success to continued investment in his company’s facilities, staff and customer base. In the last year, the company invested around $10 million in renovations at three of its St. Louis facilities. In order to stay competitive this year, the company plans to begin selling the Honda Insight, which Bommarito said is less expensive than its hybrid competitors.

Leadership: CEO Frank Bommarito, President John Bommarito

2007 revenue: $606.9 million (rank 29)

Employees: 400 local and total

28. Dierbergs Markets

2008 revenue: $675 million Flat

Dierbergs Markets reported flat revenue between 2007 and 2008 as the supermarket chain continues a remodeling program launched six years ago. Dierbergs expects to complete remodeling of its Dierbergs Heritage Place store in Creve Coeur the first half of this year and follow that up with a remodeling of its Clarkson Clayton store, including a 16,500-square-foot addition, in the second half of 2009. With the remodeling of those two stores, the business will have brought all 23 of its stores up to date, said spokesman Todd Vasel. Dierbergs Markets also opened its newest store, and its first in Jefferson County, last year — a 71,477-square-foot supermarket in Arnold.

The grocery chain has been in the Dierberg family since 1914. Chairman Robert Dierberg, a grandson of the founder, shares control of the business with son Greg, daughter Laura, and a cousin, Roger Dierberg.

Leadership: Chairman Robert Dierberg, CEO and President Greg Dierberg

2007 revenue: $675 million (rank 26)

Employees: 4,500 local and total

29. Piasa Enterprises Inc.

2008 Revenue: $510.4 million +10%

Piasa Enterprises Inc. is in the business of petroleum, so it is no surprise that the Hartford, Ill.-based company’s revenue grew 10 percent in 2008. “The growth was really not volume-driven, but driven instead by the price of the commodity,” said Piasa President Matt Schrimpf. In 2008, Piasa expanded marketing further into Missouri, including Columbia, Palmyra and Springfield; it hopes to enter Iowa markets in the next month, Schrimpf said.

Although crude oil has been trading in the range of $43 to $48 a barrel, Shrimpf projects the trading range will stabilize around $65 to $70 a barrel in the next 18 months. He is projecting another 10 percent growth in 2009. Piasa owns four pipeline terminals. The company’s main shareholder is R. William Schrimpf. His son Matt and daughter, Susan Hatfield, also have ownership stakes.

Leadership: Chairman and CEO R. William Schrimpf, President Matt Schrimpf

2007 revenue: $464 million (rank 38)

Employees: 51 local and total

T30. Major Brands

2008 revenue: $500 million +13.6%

As chief executive of family-owned Major Brands, Todd Epsten runs Missouri’s largest wholesale distributor of wines and spirits. Late last year he also acquired Western Beverage Co., an Anheuser-Busch InBev distributor in Oregon, for an undisclosed amount. The company, now a wholly owned Major Brands subsidiary, is expected to increase

Major Brands’ revenue $125 million. “Our business was late to be affected by the downturn,” Epsten said. “Although this year will be much more challenging, we want to continue to invest and position ourselves to rebound strong.”

Major Brands’ more than 10,000 Missouri customers include grocery stores, restaurants and other retailers. Besides top wines and spirits, the company distributes imported and craft beers, including St. Louis-based Schlafly, plus Red Bull energy drink.

Leadership: Chairman Bobby Epsten, CEO Todd Epsten

2007 revenue: $440 million (rank 40)

Employees: 380 local, 975 total

T30. TSI Holding Co.

2008 revenue: $500 million -1%

Following four years of record growth, TSI Holding saw revenue dip 1 percent in 2008 due to the economic downturn and a hit to its jewelry business from a drop in retail sales. The company, led by Chief Executive John Hauck and owned entirely by his family, has operations in three business platforms: steel distribution and manufacturing, sterling silver and costume jewelry design and distribution, and a charter airline. “Since the third quarter, everything but our airline has been on a downward trend,” Hauck said. “We will take our beating like everyone else this year, but we are in a good position to live through this business cycle.”

With no debt on its books, TSI is looking to acquire distribution, logistics and light manufacturing companies that have revenue in the $50 million to $150 million range.

Leadership: President and CEO John Hauck

2007 revenue: $505 million (rank 33)

Employees: 375 local, 1,050 total

32. Bryan Cave LLP

2008 revenue: $499 million +6.4%

Bryan Cave LLP began 2009 with an expansion, absorbing approximately 200 lawyers from Atlanta-based Powell Goldstein, in a move that grew the firm to more than 1,200 attorneys in 26 locations. St. Louis Managing Partner Peter Van Cleve said the growth increased the firm’s legal capacities. “New offices were opened in Atlanta, Dallas and Charlotte, and our D.C. office nearly doubled in size,” he said. “We added lawyers specializing in banking, tax, health care and regulatory areas.” Other recent additions to the firm’s practice areas include a financial crisis response team and distressed financial institutions team. “These groups will most likely continue to expand as we help our clients deal with the economic downturn and its implications,” Van Cleve said. Bryan Cave is owned by its partners and has 276 attorneys in St. Louis.

Leadership: Managing Partner Don Lents

2007 revenue: $469.1 million (rank 37)

Employees: 662 local, 2,012 total

33. J.D. Streett & Co. Inc.

2008 revenue: $448 million +5.2%

The summertime surge of oil prices, plus the growing success of its ZX brand of gasoline, fueled a 5 percent increase in revenue for J.D. Streett & Co. Inc., a diversified petroleum products company. Currently the company is holding off on major expansions due to volatility in the industry, particularly since oil prices have plunged. “We want to make sure we come through the downturn a stronger company,” said CFO James Schuering.

J.D. Streett has 18 convenience stores/gasoline stations and five cigarette and beer stores in the metro region. The company also manufactures motor oils, transmission fluid and antifreeze, and has two petroleum terminals. The company is owned by the Baker family, which bought it from the Streett family in the 1950s.

2007 revenue: 426.0 million (rank 41)

Employees: 110 local, 350 total

34. S.M. Wilson & Co.

2008 revenue: $447.6 million -1.6%

Revenue at general contracting firm S.M. Wilson & Co. dipped in 2008, from $455 million to $447.6 million, and President Scott Wilson projects a further decline of between 15 percent and 20 percent in 2009 due to the slowed economy. “A strategy we have is to follow the federal stimulus money and see where it goes,” Wilson said.

S.M. Wilson’s core markets are health-care, education, retail, commercial and industrial. The company also is expanding into military work, with a $22 million project at Fort Leonard Wood currently under way. Its largest project under construction is the $210 million, 675,500-square-foot BJC Institute of Health, which is a joint venture between Barnes-Jewish Hospital and Washington University. Wilson is the majority stockholder in S.M. Wilson. Employees own a 10 percent stake in the company.

Leadership: President Scott Wilson

2007 revenue: $455 million (rank 39)

Employees: 133 local, 157 total

35. Angelica Corp.

2008 revenue: $445 million +3.5%

Revenue increased 3.5 percent to $445 million last year at Angelica Corp. as the company transitioned from being publicly traded to privately held. Private equity firm Lehman Brothers Merchant Banking bought Angelica last summer in a $310 million deal. August 4 was the company’s last day on the New York Stock Exchange.

Angelica’s growth in 2008 was organic, coming from existing markets, but the firm is on the lookout for “smart acquisitions” that strengthen its current offerings or expand its geographical horizons, according to President and Chief Executive Steve O’Hara. Withstanding any large acquisitions, O’Hara is forecasting 5 percent to 6 percent revenue growth for 2009 for the company, which rents, cleans and services linens and other products for the health-care industry.

Leadership: President and CEO Steve O’Hara

2007 revenue: $430 million (new to list)

Employees: 5 local, 6,000 total

36. Thompson Street Capital Partners

2008 revenue: $442.5 million (estimate)

Thompson Street Capital Partners, often an active buyer, took it slow in 2008, with only two acquisitions: Industrial Rubber Products for $91.1 million and Universal Air Filter Co. for an undisclosed amount. “We’ve been very cautious about the economy for 18 months,” said Jim Cooper, managing principal of the private equity firm he founded with Peter Finley in 2001. Cooper said both of the recently acquired companies are “reasonably recession-resistant.”

By keeping its money in its pocket, Thompson Street is well positioned to invest when the economy begins to turn around. “We are very interested in medical labs, in-home medical treatment businesses and filtration companies,” Cooper said. Thompson Street currently has 10 companies in its portfolio.

Leadership: Managing principals Jim Cooper and Peter Finley

2007 revenue: $590 million (rank 30)

Employees: 20 local, 2,000 total

37. Moto Inc.

2008 revenue: $441 million +13%

Revenue at Moto Inc., which does business as Motomart, rose 13 percent in 2008, the company’s most profitable year, but much of the increase was due to rising oil costs. “When gas goes up to $4 a gallon, it inflates sales,” said President and CEO Jim Forsyth. “Sales don’t mean a whole lot in this industry.” The company added four locations during 2008, bringing its total to 74 units. This year, Moto will open only one or two new locations. Moto is owned by the Kirchoff, Gustafson, Badgley and Forsyth families.

Leadership: Chair Cynthia Gustafson, President/CEO Jim Forsyth

2007 revenue: $390 million (rank 45)

Employees: 450 local, 900 total

38. First Banks Inc.

2008 revenue: $432.4 million -6.8%

Hard hit by the collapse of the real estate market nationally, First Banks Inc.’s revenue fell 6.8 percent in 2008. “Being an active lender with a concentration in real estate loans, particularly in California and Florida, we, like others in our industry, incurred significant loan losses in 2008,” Terry McCarthy, president and chief executive, said in a statement this month. “We are proactively addressing this risk, however, by charging nonperforming loans down to current appraised values and substantially increasing our allowance for loan losses to $220.2 million at Dec. 31, 2008, compared to $168.4 million at Dec. 31, 2007.”

First Banks, owned by the James Dierberg family, was the largest local recipient of loans through the Troubled Asset Relief Program, commonly called TARP, at $295.4 million. Late last year, it filed suit against local builder Fischer & Frichtel for a balance due on a $2.58 million loan. First Banks had assets of $10.8 billion as of Dec. 31 and operates 216 branches in Missouri, Illinois, California, Florida and Texas.

Leadership: Chairman James Dierberg, President and CEO Terry McCarthy

2007 revenue: $464 million (rank 36)

Employees: 1,350 local, 2,370 total

39. Suntrup Automotive

2008 revenue: $425 million -15 %

Suntrup Automotive saw revenue dip 15 percent in 2008 in the face of near frozen credit markets and spiking unemployment rates. “It’s been a tough year for everybody,” said co-owner Tom Suntrup. “Unemployment is high. Credit is pretty tight with the lenders, so that makes it difficult.”

Following a brutal year for the automotive industry, Suntrup said he hopes the industry has bottomed out and that 2009 will bring some stability to the market. In response to the decline, the family-owned automotive group pared down its work force nearly 15 percent and inventory an estimated 25 percent among its 10 area dealerships, as well as cut back on advertising. The brands that suffered the most were General Motors and Ford, while Hyundai, Kia and Nissan sales were strong. More than 20 members of the Suntrup family are active in the group.

Leadership: Suntrup family

2007 Revenue: $500 million (rank 35)

Employees: 450 local and total

40. HBE Corp.

2008 revenue: $415 million +1.2%

HBE’s revenue rose last year amid booming spending on health-care construction, the company’s focus. President and CEO Fred Kummer said HBE just signed its biggest contract ever, for a $294 million hospital outside Los Angeles. HBE exited the hotel business last year, selling its five remaining Adams Mark hotels, including its St. Louis property.

HBE launched its employee stock ownership program and spin-off of the main portion of its business. Kummer launched the new company, known as HBE Design-Build, with a $100 million capital investment. HBE is majority-owned by the Kummer family, with about 65 employees holding partial ownership. “What I want to do is get ownership of the company across a broad section of managers,” said Kummer, 79. Key personnel will have the chance to buy into the firm over the next four years.

Leadership: Chairman, CEO and President Fred Kummer

2007 revenue: $410 million (rank 42)

Employees: 350 local, 500 total

41. McBride & Son Enterprises

2008 revenue: $410.6 million -34.8%

“We’re not participating in the downturn” was the mantra of John Eilermann Jr., chairman and chief executive of McBride & Son Enterprises Inc., a year ago, and it remains his mantra today — in spite of a 34.8 percent drop in revenue and a collapsing real estate market nationwide. In addition, the number of full-time employees has been cut roughly in half from 1,165 area workers in 2007 to 613.

The employee-owned company remains the largest home builder in St. Louis, building six times more homes than its closest competitor, Eilermann said. “We’re off to a strong start with over 300 sales in the first two months of 2009,” he said. McBride sold 1,418 homes in 2008 and 2,102 homes in 2007.

Leadership: Chairman and CEO John Eilermann Jr.

2007 revenue: $630 million (rank 27)

Employees: 613 local, 709 total

42. Lou Fusz Automotive

2008 revenue: $402.6 million (estimate)

Lou Fusz Automotive Network did not avoid the hit sustained by the automobile industry last year. In 2008, car sales were down nearly 20 percent, from 27,651 in 2007 to 22,202, according to figures from the Missouri Department of Revenue. That’s roughly on par with the 18 percent national drop in sales reported by the National Automobile Dealers Association.

Chief financial officer Peter Ramey said last November that the company had reduced employee numbers through attrition from 880 at the start of the year to 806. The company is owned by Lou Fusz Sr., Lou Fusz Jr. and Ramey. Lou Fusz has 17 St. Louis area locations. Its brands include Pontiac, Buick, GMC, Dodge, Chrysler, Kia, Ford, Saturn, Nissan, Subaru, Toyota and Jeep.

Leadership: Chairman Lou Fusz Sr., President Lou Fusz Jr.

2007 Revenue: $501.7 million

Employees: 806 local and total

43. Stupp Brothers Inc.

2008 revenue: $400 million Flat

Stupp Brothers Inc., a steel pipe producer, steel fabricator and owner of Midwest BankCentre, reported revenue was essentially flat from 2007 to 2008. The family-owned company benefited when the price of steel doubled in 2008, but “then it fell back 50 percent, so it’s now where it was at the end of 2007,” said President John Stupp Jr. “When the price of steel was going up, everyone wanted to lock in the price. Now they think the price may continue to go down, so they’re waiting.”

On the plus side, Midwest BankCentre had a record year, despite the downturn, posting net income of $9 million in 2008, compared with $7.8 million in 2007. “Long term, I feel good about everything we do,” Stupp said, “but short term, I don’t know whether we’re at the bottom, or how ugly the bottom may be.”

Leadership: Chairman Robert Stupp, President John Stupp Jr.

2007 revenue: $400 million (rank 44)

Employees: 136 local, 500 total

44. Distribution Management

2008 revenue: $380 million +10.1%

Chief Executive Tom Fleming attributes the 10.1 percent growth in 2008 revenue and 30 percent increase in profit at Distribution Management Inc. to changes the imaging and computer supplies wholesaler made early last year. “We struggled in the first part of the year, then made some adjustments in our sales team and strategy and recouped it,” he said. The company reorganized its sales force from three to four regions centered around its four distribution centers. In 2008, the company also moved its Fresno, Calif., distribution center to a 70,000-square-foot facility.

Fleming said the company already has posted a 10 percent increase in sales in January and February, as compared to the same time period in 2008. He’s forecasting 10 percent growth overall for the year. Distribution Management is owned by the company’s management team.

Leadership: CEO Tom Fleming, President Greg Welchans

2007 revenue: $345 million (rank 48)

Employees: 166 local, 196 total

45. MMS - A Medical Supply Co.

2008 revenue: $371.6 million +10.5 %

After increasing revenue more than 10 percent in 2008, MMS - A Medical Supply Co. is hoping to top $400 million in 2009. The medical supply distributor recently landed a contract with the state of New York and also has picked up additional business in Texas and Georgia, according to President and Chief Executive Gary Reeve.

In 2007, the company launched a division to provide supplies to EMS responders. Reeve said MMS added 12 sales people to the division in September 2008, and Reeve is anticipating growth from the unit in 2009. “This should really kickstart the whole division,” he said. MMS is owned by a group of investors including Reeve, Harry Bussmann, Tom Harris, JoAnn Winter, Ed Warren, Dan Rieman, Bill Jacoby, Harry Bussmann IV and Tyler Bussmann.

Leadership: President and CEO Gary Reeve

2007 revenue: $336.3 million (rank 50)

Employees: 160 local, 450 total

46. CSI Leasing Inc.

2008 revenue: $367.4 million +38.1%

CSI Leasing Inc., an information technology leasing company headquartered in Creve Coeur, grew revenue by $101 million thanks to business outside the United States.

Steve Hamilton, CSI president and chief operating officer, said booming business overseas, particularly in Central and South America — where many companies are modernizing their IT systems — accounted for most of the revenue surge. Foreign revenue increased 75.5 percent to $184.6 million. “Our business has remained flat in the U.S.,” he said. “It’s a mature market and the cost of equipment keeps coming down, so we have to keep maintaining higher volumes.” Ken Steinback is CSI’s largest shareholder and chairman. The company is employee-owned.

2007 revenue: $266 million (rank 60)

Employees: 354 local, 633 total

47. The Korte Co.

2008 revenue: $363.1 million +34.6%

The Korte Co., one of St. Louis’ largest general contractors, saw a 34.6 percent increase in revenue last year from $269.7 million in 2007. But the weakened economy has forced Korte Co. to lower 2009 projections to $310 million, according to President and Chief Executive Todd Korte. Todd Korte said the company scaled back its expectations in the face of project delays. “I know locally, the Art Museum and Wash U. have delayed capital expenditures,” he said. “That’s the pervading market sense right now.” The general contractor’s 2009 projects include a $60 million research center in Las Vegas. Closer to home, Korte Co. will complete $4 million in renovations at Anderson Hospital in Maryville, Ill.

Last year marked the formal retirement for Korte’s father, Ralph Korte, who founded the family-owned company 50 years ago.

Leadership: President and CEO Todd Korte

2007 revenue: $269.7 million (rank 58)

Employees: 210 local, 260 total

48. Fred Weber Inc.

2008 revenue: $353.3 million +26.5%

Commercial construction firm Fred Weber Inc. saw revenue build 26.5 percent in the past year thanks to some high-dollar, high-profile local projects. The employee-owned company is working on the $245 million reconstruction of AmerenUE’s Taum Sauk Reservoir in Johnson’s Shut-Ins State Park. Fred Weber also is a member of Gateway Constructors, the consortium of contractors performing $535 million worth of improvements on Highway 40/64. Concrete and asphalt paving projects are among Fred Weber’s construction specialties, so the surge in asphalt prices last summer because of soaring oil prices impacted the company. It owns about a dozen subsidiary companies, including the Bluff City Minerals limestone mining operation in Alton, Ill., and Quality Sand in Collinsville, Ill.

2007 revenue: $278.9 million (rank 55)

Employees: 490 local, 740 total

49. Drury Hotels Co.

2008 revenue: $352 million +5.4 %

Drury Hotels Co. saw revenue increase 5.4 percent in a year when the company opened eight hotels, two more than its typical annual additions. The new locations are in St. Louis; Flagstaff, Ariz.; Findlay, Ohio; Des Moines, Iowa; Indianapolis; Baton Rouge, La.; Charlotte, N.C.; and Meridian, Miss.

Due to the recession, Drury has slowed its expansion plans and said it will open only three hotels in 2009 — in Sikeston, Mo.; San Antonio and Phoenix — said Alison Casler, director of training and communications. The company is also pursuing a plan to build a hotel in the heart of Brentwood’s retail corridor. “We continue to work through the process with the city,” Casler said. CEO and President Chuck Drury and his siblings own Drury Hotels.

Leadership: CEO and President Chuck Drury

2007 Revenue: $334 million (rank 49)

Employees: 750 local, 4,100 total

50. Southern Real Estate

2008 revenue: $350 million (estimate)

The Cella family, which controls Southern Real Estate & Financial, is investing in its own backyard. Last August, the company paid $1.5 million for the Busch’s Grove Restaurant in Ladue and converted it into a gourmet market. Separately, the company launched a $20 million expansion of its Oaklawn Park horse racing and gaming business in Hot Springs, Ark. That addition will give Oaklawn room for 900 electronic gaming terminals.

The business owns commercial properties around the country, including the Shops at Clarkson Corner in west St. Louis County, the Clayprice Shopping Center in Ladue and an office building at 9811 S. Forty Drive. Charles Cella oversees the business, which is run by his sons, John and Louis Cella, and John McDonald.